Thu, 04/05/2018 - 07:25

Nissan Murano

This is the ’19 Nissan Murano, caught testing for the first time in Arizona.

The Murano will get some minor revisions for the ’19 model year to keep it looking fresh, specifically, a new front design inspired by the ’19 Nissan Altima that is scheduled to debut at the New York Auto Show. New headlights and taillights will also be part of the package.

Expect minor interior revisions, too, along with some technology upgrades that should incorporate Nissan’s ProPilot Assist driver safety tech, as well as a new infotainment system.

As far as the powertrain goes, the V6 engine will likely be replaced by a turbocharged or supercharged four-cylinder.

The ’19 Murano should appear this spring/summer.

Nissan Murano

Photo credit: Brian Williams, SpiedBilde

Wed, 04/04/2018 - 15:04

By SEMA Editors

SEMA Garage

SEMA Garage
Manufacturers of air intakes, superchargers, exhaust systems and diesel auto parts can now test for emissions compliance at the SEMA Garage following a recent renovation that included the addition of particulate matter (PM) measuring equipment.

Manufacturers of air intakes, superchargers, exhaust systems and diesel auto parts can now test for emissions compliance at the SEMA Garage following a recent renovation that included the addition of particulate matter (PM) measuring equipment. The remodel allows for more SEMA members to simultaneously test-fit prototypes, install components and perform emissions tests.

Diesel emissions testing is particularly useful for manufacturers that create products that affect engine performance, air flow or fuel delivery, because the parts must comply with emissions standards set by the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (CARB).

The renovation also included enhancements to the installation center and emissions lab, resulting in more space to better serve SEMA-member companies that depend on these services.

In addition to the emissions lab and installation center, the SEMA Garage offers member companies several other services and programs to help bring their products to market, including measuring sessions, custom scanning and 3D printing, a training center, and a CAD tech transfer program.

For more information about the SEMA Garage, visit www.semagarage.com.

 

 

 

 

 

 

Wed, 04/04/2018 - 15:04

By SEMA Editors

SEMA Garage

SEMA Garage
Manufacturers of air intakes, superchargers, exhaust systems and diesel auto parts can now test for emissions compliance at the SEMA Garage following a recent renovation that included the addition of particulate matter (PM) measuring equipment.

Manufacturers of air intakes, superchargers, exhaust systems and diesel auto parts can now test for emissions compliance at the SEMA Garage following a recent renovation that included the addition of particulate matter (PM) measuring equipment. The remodel allows for more SEMA members to simultaneously test-fit prototypes, install components and perform emissions tests.

Diesel emissions testing is particularly useful for manufacturers that create products that affect engine performance, air flow or fuel delivery, because the parts must comply with emissions standards set by the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (CARB).

The renovation also included enhancements to the installation center and emissions lab, resulting in more space to better serve SEMA-member companies that depend on these services.

In addition to the emissions lab and installation center, the SEMA Garage offers member companies several other services and programs to help bring their products to market, including measuring sessions, custom scanning and 3D printing, a training center, and a CAD tech transfer program.

For more information about the SEMA Garage, visit www.semagarage.com.

 

 

 

 

 

 

Sun, 04/01/2018 - 15:26

SEMA News—April 2018

SDC User Forum Is Live and Waiting for You

By Craig Schmutzler
 
Every year, the SEMA Data Co-op (SDC) conducts a user group meeting at the SEMA Show. This face-to-face meeting serves as a great opportunity for our team to ask the following questions:
  1. What is working well?
  2. What needs to be fixed?
  3. How can we do a better job for you?

Our members provide us with good, usable feedback, and we work hard to ensure that we are meeting their needs. Our desire is to help our members grow their businesses through the services that we offer, and their feedback helps us meet that goal.

Over the past few years, we have received multiple requests for a user forum to allow for better and more-immediate communication between members. Last year, we identified the development of a user forum as one of our key projects. The forum was completed and launched in late December and allows our members to easily connect with each other and with us.

Here are four important reasons to visit the SDC forum:

Ask Questions: The forum provides an environment to ask questions and receive quick answers from other users or from SDC staff. We have a good number of savvy business people among our members. Don’t feel as though your questions need to be limited to topics of product information or SDC systems use. You may have a question on how to launch your next marketing campaign or how best to find that next stellar employee. The forum is a great place to find resources to help make important business decisions.

Exchange Ideas: SDC thrives on the ideas of our members. We launched a new user interface last year that incorporates the ideas put forth by our members. We want the forum to serve as a platform for promoting the constructive exchange of ideas. We all have those “Wouldn’t it be cool if…” thoughts. Your thought may be related to our systems, our industry or your individual business. Sharing ideas allows for productive discussions that help formalize plans and move businesses forward.

Don’t be shy; we aren’t judgmental. Some of the best ideas sound a bit far-fetched when first presented. If you need an example to bolster your courage, consider the fact that there is a successful business out there that sells plastic wishbones. It was established to avoid the sibling rivalry and family disputes that result from everyone’s desire to get that lone Thanksgiving turkey wishbone. When deciding whether to share your “crazy” idea, consider the plastic wishbone—and then share your idea.

Share Best Practices: A best practice is a procedure that has been shown by research and experience to produce optimal results and that is established or proposed as a standard suitable for widespread adoption. (At least, that is what Merriam-Webster says.) From our perspective, a best practice is something that works for you and your business. Other members may well benefit from your experience as they work to make decisions and establish processes. If you have a process or procedure that works well for you, share it in the forum to help other members. As forum participation grows, you may well find yourself seeing value in the ideas that others are posting.

Receive Important Announcements: Finally, we use the forum as a vehicle through which to communicate important information to our members. We may have new system functionality, a cool update, or an upcoming event. Along with Facebook and our newsletters, the forum is one of the places we post that information. Be sure to check in often.

The SDC forum is available to all SDC members and can be accessed through our user interface by clicking the SDC User Forum link on the left side of the screen. If you have questions regarding how to become an SDC member or need help accessing the forum, please feel free to contact us. We stand ready to assist.

Sun, 04/01/2018 - 15:26

SEMA News—April 2018

REQUIRED READING

By Juan Torres

New Aftermarket Products

Every year, the automotive world converges at the trade-only SEMA Show in Las Vegas where attendees learn about the latest trends and emerging technology in the aftermarket industry. Exhibitors also take the opportunity to introduce their latest product offerings, many of which are displayed in the New Products Showcase, making it the number-one destination for attendees at the event and the subject of many articles (as seen below) by the more than 3,500 journalists covering the SEMA Show.

Diesel Power
Diesel PowerJohn Lehenbauer roamed the aisles and New Products Showcase at the 2017 SEMA Show to find the newest innovative parts accessories for diesel enthusiasts. Additionally, his article gave readers a pictorial glimpse of the New Products Showcase at the trade-only event.
Hot Rod
Hot RodBecause the SEMA Show is not open to the public, Chris Shelton put together an article for the readers of Hot Rod on his favorites new products at the event. His products list ranged from what he thought were the coolest parts in the performance categories to those that improve the driving experience.
 
BodyShop Business
BodyShop BusinessEvery year, the Society of Collision Repair Specialists makes a presentation during its open board meeting on new collision-repair products found at the SEMA Show. The products detailed in Josh Cable’s article were put to the test before being presented to SCRS members.
Heard in Social Media

“One of the highlights of our SEMA experience is getting exclusive access to the New Products gallery. Here’s an insider’s look from Team APW!”—Auto Parts Warehouse, via Facebook

“Here’s a rundown of the best new off-road and 4x4 products introduced at SEMA 2017.”—RacingJunk, via Twitter

“Take a peek at some of the new high-performance & racing products we came across! #SEMA2017”—Summit Racing Equipment, via Facebook

Four Wheeler scoured the floors of SEMA 2017 to find these 10 new products for you to enjoy!”—Four Wheeler, via Twitter

 

Sun, 04/01/2018 - 15:18

SEMA News—April 2018

Driver-Assist Technologies

New SEMA Research to Guide Your Business Strategies

ADAS
Advanced Driver Assistance Systems (ADAS) and Connected Vehicle Technologies (CVT) are poised for a disruptive transformation of the aftermarket. Now is the ideal time to assess your readiness for this revolution, and the latest SEMA research can help you seize the rapidly emerging business opportunities.

SEMA research indicates that the U.S. aftermarket for advanced driver assistance systems (ADAS) and connected vehicle technologies (CVT) can be expected to grow into a $1.5 billion industry within the next five years, even though the emerging segment is still in its infancy. The impact of these new systems can’t be overstated. Hard as it may be to imagine, they will eventually affect virtually everything from wheel and tire modifications and vehicle electronics tweaks to the addition of custom bumpers, running boards, grilles and other hard parts. With so much at stake in these rapid-breakthrough technologies, SEMA has made identifying ADAS/CVT opportunities for association members a key priority.

According to the recently released “SEMA Advanced Vehicle Technology Report,” the current supplier landscape for these technologies is limited, spelling plenty of growth potential for new participants ready to enter the marketplace and stake out a strong presence in multiple product categories. In the meantime, channel and service providers must start now to acquire proper education, equipment and skilled personnel if they are to successfully adapt to this changing market and truly thrive.

While slow in the early adoption of ADAS/CVT products, American consumers are now not only warming to but also increasingly embracing them. As they become more and more accustomed to the added safety and conveniences offered by OEM ADAS/CVT packages in their new-model cars, drivers are expected to eagerly seek out similar supplemental products for all of their vehicles. The reason is obvious: The National Safety Council recently estimated that 20% of all motor-vehicle-related injuries can be tied to distracted driving. ADAS/CVT products can dramatically cut such risks. Add to that the substantially reduced risks of backover- and blind-spot-related accidents, and it’s easy to see why the more consumers learn about these technologies, the more they demand them.

The following are highlights of key overall findings from the “SEMA Advanced Vehicle Technology Report,” available for download at www.sema.org/avt-opportunities. Upcoming issues of SEMA News will continue to break down report specifics, topic by topic.

Key ADAS Aftermarket Systems

(total million dollars upfit)

ADAS
The ADAS/CVT market had an estimated worth of $977 million in 2016 and is expected to reach $1.5 billion by 2021—a 9.1% annual compound growth rate. Source: Market Feedback, Ducker Analysis and CAR

Market Share by Manufacturer Segmentation

(by total revenue)

ADAS


Advanced systems manufacturers can expect to split the revenue pie almost equally between leading, secondary and specialty manufacturers. Source: Market Feedback, Ducker Analysis and CAR

Key ADAS Aftermarket Systems

(total million units upfit)

ADAS


The estimated compound annual growth rate of aftermarket ADAS-product upfitments in millions over the current five-year term is 4.5%. Source: Market Feedback, Ducker Analysis and CAR

ADAS Channel Evolution
ADAS

Although independent repair and specialty businesses currently take the lion’s share of ADAS sales and servicing, parts chains will gain a significant footing by 2022. Source: Market Feedback and Ducker Analysis

New Opportunities

Based on its research, SEMA encourages its manufacturing and installing members to explore the opportunities presented by the fast-growing, high-margin ADAS/CVT markets. In making its “SEMA Advanced Vehicle Technology Report” available, the association hopes to help guide product and service planning and entry strategies for this emerging market. The SEMA analysis can help members understand the current market and its forecasted growth potential.

Amid this growth and rapid adoption of ADAS/CVT technologies, the specialty-equipment market will experience an unprecedented disruptive trend. These new systems are becoming increasingly common across OEM platforms, with consumers already weighing them in their buying decisions. Driver-assist technologies may currently represent only a relatively small share of the motor-vehicle aftermarket, but there can be little doubt that they are poised for rapid gains. Consider that electronic content in new vehicles is now greater than 40%. With current gross margins for these technologies between 40%–60% and rising, there will be increasing interest to replace, retrofit and modify the vehicle electronics systems on all cars.

Charting ADAS Strategies

In forming a market game plan, aftermarket businesses will want to fully understand not just the advanced technologies but also the timelines and channels of their rollouts.

  • Systems: Passive systems such as forward-collision, lane-departure and blind-spot warning, among others, will likely grow first and fastest. More complex active systems such as adaptive cruise control and automated braking may offer greater revenue potential, but they carry legislative and liability concerns, making them less attractive for the specialty-equipment industry.
  • Adoption: Aftermarket suppliers will wish to carefully monitor OEM adoption rates as leading indicators of market acceptance. Today’s OEM penetration is already estimated at $7–$8 billion. Meanwhile, future legislation may determine access to OEM systems data, which will directly affect the aftermarket’s ability to offer OEM-level calibrated products.
  • Channels: There will be many ways to engage ADAS/CVT business opportunities, including through part and component manufacturing, distribution, installation, repair and service. For example, aftermarket ADAS products are currently sold mainly through independent vehicle customization, repair and specialty-equipment shops. As the ADAS market expands, sales channel patterns will likely evolve toward traditional aftermarket models, with parts chains taking an increasing share.

For now, fleets account for the adoption of about 70% of current ADAS aftermarket products and will continue to drive sales in the near term. However, consumer awareness, needs and marketing will gain traction for ADAS products in passenger vehicles over the next two to three years.

Key Drivers and Technologies

The ADAS aftermarket is on target to grow from 5.3 million total unit upfits in 2016 to 6.6 million units upfitted by 2021. Passive parking assist—a relatively simple technology—accounts for the majority of market growth. In addition, SEMA market research has identified blind-spot warning and passive forward-collision warning systems as high-growth categories. Key aftermarket growth drivers will include:

  • The lower cost of aftermarket systems relative to OEM products, which are often included mainly in higher trim levels.
  • The ability to utilize ADAS products on older vehicles, as well as late-model trim levels that do not offer the same options.
  • The increased interest in safety systems on the part of end users.
  • The ease of self-installation by customers for certain systems, such as passive parking assistance.
Stay Informed!

The tremendous potential ahead for the specialty-equipment industry is detailed in “SEMA Advanced Vehicle Technology Opportunities.” To download a copy of the report, go to
www.sema.org/avt-opportunities.

Visit the SEMA Garage Vehicle Technology webpage at www.semagarage.com/services/vehicletechnology for additional information about ADAS technologies and how they may impact your business. 

The Bottom Line

To sum up, the aftermarket for ADAS is being driven by a blend of consumer demand for safety systems, new product availability and the growing ability of installers to offer these innovative and increasingly vital products for older vehicles. In addition, the aftermarket is positioned to offer cost-effective alternatives for newer vehicles whose ADAS options may be deemed by consumers too costly or insufficiently robust.

With a presently limited supplier landscape, there are real opportunities for new entrants into the aftermarket. Moreover, SEMA-sponsored research finds that the financing community is already welcoming ADAS participants with strong, forward-looking valuations. This research further suggests that the marketplace will evolve organically, with participants innovating new and unique value propositions and/or migrating to ADAS from other vehicle and sensor-technology segments. In other words, now is the ideal time to evaluate your business readiness for the ADAS/CVT revolution and consider how you can tap into this new segment’s tremendous potential.

Sun, 04/01/2018 - 15:18

SEMA News—April 2018

Driver-Assist Technologies

New SEMA Research to Guide Your Business Strategies

ADAS
Advanced Driver Assistance Systems (ADAS) and Connected Vehicle Technologies (CVT) are poised for a disruptive transformation of the aftermarket. Now is the ideal time to assess your readiness for this revolution, and the latest SEMA research can help you seize the rapidly emerging business opportunities.

SEMA research indicates that the U.S. aftermarket for advanced driver assistance systems (ADAS) and connected vehicle technologies (CVT) can be expected to grow into a $1.5 billion industry within the next five years, even though the emerging segment is still in its infancy. The impact of these new systems can’t be overstated. Hard as it may be to imagine, they will eventually affect virtually everything from wheel and tire modifications and vehicle electronics tweaks to the addition of custom bumpers, running boards, grilles and other hard parts. With so much at stake in these rapid-breakthrough technologies, SEMA has made identifying ADAS/CVT opportunities for association members a key priority.

According to the recently released “SEMA Advanced Vehicle Technology Report,” the current supplier landscape for these technologies is limited, spelling plenty of growth potential for new participants ready to enter the marketplace and stake out a strong presence in multiple product categories. In the meantime, channel and service providers must start now to acquire proper education, equipment and skilled personnel if they are to successfully adapt to this changing market and truly thrive.

While slow in the early adoption of ADAS/CVT products, American consumers are now not only warming to but also increasingly embracing them. As they become more and more accustomed to the added safety and conveniences offered by OEM ADAS/CVT packages in their new-model cars, drivers are expected to eagerly seek out similar supplemental products for all of their vehicles. The reason is obvious: The National Safety Council recently estimated that 20% of all motor-vehicle-related injuries can be tied to distracted driving. ADAS/CVT products can dramatically cut such risks. Add to that the substantially reduced risks of backover- and blind-spot-related accidents, and it’s easy to see why the more consumers learn about these technologies, the more they demand them.

The following are highlights of key overall findings from the “SEMA Advanced Vehicle Technology Report,” available for download at www.sema.org/avt-opportunities. Upcoming issues of SEMA News will continue to break down report specifics, topic by topic.

Key ADAS Aftermarket Systems

(total million dollars upfit)

ADAS
The ADAS/CVT market had an estimated worth of $977 million in 2016 and is expected to reach $1.5 billion by 2021—a 9.1% annual compound growth rate. Source: Market Feedback, Ducker Analysis and CAR

Market Share by Manufacturer Segmentation

(by total revenue)

ADAS


Advanced systems manufacturers can expect to split the revenue pie almost equally between leading, secondary and specialty manufacturers. Source: Market Feedback, Ducker Analysis and CAR

Key ADAS Aftermarket Systems

(total million units upfit)

ADAS


The estimated compound annual growth rate of aftermarket ADAS-product upfitments in millions over the current five-year term is 4.5%. Source: Market Feedback, Ducker Analysis and CAR

ADAS Channel Evolution
ADAS

Although independent repair and specialty businesses currently take the lion’s share of ADAS sales and servicing, parts chains will gain a significant footing by 2022. Source: Market Feedback and Ducker Analysis

New Opportunities

Based on its research, SEMA encourages its manufacturing and installing members to explore the opportunities presented by the fast-growing, high-margin ADAS/CVT markets. In making its “SEMA Advanced Vehicle Technology Report” available, the association hopes to help guide product and service planning and entry strategies for this emerging market. The SEMA analysis can help members understand the current market and its forecasted growth potential.

Amid this growth and rapid adoption of ADAS/CVT technologies, the specialty-equipment market will experience an unprecedented disruptive trend. These new systems are becoming increasingly common across OEM platforms, with consumers already weighing them in their buying decisions. Driver-assist technologies may currently represent only a relatively small share of the motor-vehicle aftermarket, but there can be little doubt that they are poised for rapid gains. Consider that electronic content in new vehicles is now greater than 40%. With current gross margins for these technologies between 40%–60% and rising, there will be increasing interest to replace, retrofit and modify the vehicle electronics systems on all cars.

Charting ADAS Strategies

In forming a market game plan, aftermarket businesses will want to fully understand not just the advanced technologies but also the timelines and channels of their rollouts.

  • Systems: Passive systems such as forward-collision, lane-departure and blind-spot warning, among others, will likely grow first and fastest. More complex active systems such as adaptive cruise control and automated braking may offer greater revenue potential, but they carry legislative and liability concerns, making them less attractive for the specialty-equipment industry.
  • Adoption: Aftermarket suppliers will wish to carefully monitor OEM adoption rates as leading indicators of market acceptance. Today’s OEM penetration is already estimated at $7–$8 billion. Meanwhile, future legislation may determine access to OEM systems data, which will directly affect the aftermarket’s ability to offer OEM-level calibrated products.
  • Channels: There will be many ways to engage ADAS/CVT business opportunities, including through part and component manufacturing, distribution, installation, repair and service. For example, aftermarket ADAS products are currently sold mainly through independent vehicle customization, repair and specialty-equipment shops. As the ADAS market expands, sales channel patterns will likely evolve toward traditional aftermarket models, with parts chains taking an increasing share.

For now, fleets account for the adoption of about 70% of current ADAS aftermarket products and will continue to drive sales in the near term. However, consumer awareness, needs and marketing will gain traction for ADAS products in passenger vehicles over the next two to three years.

Key Drivers and Technologies

The ADAS aftermarket is on target to grow from 5.3 million total unit upfits in 2016 to 6.6 million units upfitted by 2021. Passive parking assist—a relatively simple technology—accounts for the majority of market growth. In addition, SEMA market research has identified blind-spot warning and passive forward-collision warning systems as high-growth categories. Key aftermarket growth drivers will include:

  • The lower cost of aftermarket systems relative to OEM products, which are often included mainly in higher trim levels.
  • The ability to utilize ADAS products on older vehicles, as well as late-model trim levels that do not offer the same options.
  • The increased interest in safety systems on the part of end users.
  • The ease of self-installation by customers for certain systems, such as passive parking assistance.
Stay Informed!

The tremendous potential ahead for the specialty-equipment industry is detailed in “SEMA Advanced Vehicle Technology Opportunities.” To download a copy of the report, go to
www.sema.org/avt-opportunities.

Visit the SEMA Garage Vehicle Technology webpage at www.semagarage.com/services/vehicletechnology for additional information about ADAS technologies and how they may impact your business. 

The Bottom Line

To sum up, the aftermarket for ADAS is being driven by a blend of consumer demand for safety systems, new product availability and the growing ability of installers to offer these innovative and increasingly vital products for older vehicles. In addition, the aftermarket is positioned to offer cost-effective alternatives for newer vehicles whose ADAS options may be deemed by consumers too costly or insufficiently robust.

With a presently limited supplier landscape, there are real opportunities for new entrants into the aftermarket. Moreover, SEMA-sponsored research finds that the financing community is already welcoming ADAS participants with strong, forward-looking valuations. This research further suggests that the marketplace will evolve organically, with participants innovating new and unique value propositions and/or migrating to ADAS from other vehicle and sensor-technology segments. In other words, now is the ideal time to evaluate your business readiness for the ADAS/CVT revolution and consider how you can tap into this new segment’s tremendous potential.

Sun, 04/01/2018 - 15:18

SEMA News—April 2018

Driver-Assist Technologies

New SEMA Research to Guide Your Business Strategies

ADAS
Advanced Driver Assistance Systems (ADAS) and Connected Vehicle Technologies (CVT) are poised for a disruptive transformation of the aftermarket. Now is the ideal time to assess your readiness for this revolution, and the latest SEMA research can help you seize the rapidly emerging business opportunities.

SEMA research indicates that the U.S. aftermarket for advanced driver assistance systems (ADAS) and connected vehicle technologies (CVT) can be expected to grow into a $1.5 billion industry within the next five years, even though the emerging segment is still in its infancy. The impact of these new systems can’t be overstated. Hard as it may be to imagine, they will eventually affect virtually everything from wheel and tire modifications and vehicle electronics tweaks to the addition of custom bumpers, running boards, grilles and other hard parts. With so much at stake in these rapid-breakthrough technologies, SEMA has made identifying ADAS/CVT opportunities for association members a key priority.

According to the recently released “SEMA Advanced Vehicle Technology Report,” the current supplier landscape for these technologies is limited, spelling plenty of growth potential for new participants ready to enter the marketplace and stake out a strong presence in multiple product categories. In the meantime, channel and service providers must start now to acquire proper education, equipment and skilled personnel if they are to successfully adapt to this changing market and truly thrive.

While slow in the early adoption of ADAS/CVT products, American consumers are now not only warming to but also increasingly embracing them. As they become more and more accustomed to the added safety and conveniences offered by OEM ADAS/CVT packages in their new-model cars, drivers are expected to eagerly seek out similar supplemental products for all of their vehicles. The reason is obvious: The National Safety Council recently estimated that 20% of all motor-vehicle-related injuries can be tied to distracted driving. ADAS/CVT products can dramatically cut such risks. Add to that the substantially reduced risks of backover- and blind-spot-related accidents, and it’s easy to see why the more consumers learn about these technologies, the more they demand them.

The following are highlights of key overall findings from the “SEMA Advanced Vehicle Technology Report,” available for download at www.sema.org/avt-opportunities. Upcoming issues of SEMA News will continue to break down report specifics, topic by topic.

Key ADAS Aftermarket Systems

(total million dollars upfit)

ADAS
The ADAS/CVT market had an estimated worth of $977 million in 2016 and is expected to reach $1.5 billion by 2021—a 9.1% annual compound growth rate. Source: Market Feedback, Ducker Analysis and CAR

Market Share by Manufacturer Segmentation

(by total revenue)

ADAS


Advanced systems manufacturers can expect to split the revenue pie almost equally between leading, secondary and specialty manufacturers. Source: Market Feedback, Ducker Analysis and CAR

Key ADAS Aftermarket Systems

(total million units upfit)

ADAS


The estimated compound annual growth rate of aftermarket ADAS-product upfitments in millions over the current five-year term is 4.5%. Source: Market Feedback, Ducker Analysis and CAR

ADAS Channel Evolution
ADAS

Although independent repair and specialty businesses currently take the lion’s share of ADAS sales and servicing, parts chains will gain a significant footing by 2022. Source: Market Feedback and Ducker Analysis

New Opportunities

Based on its research, SEMA encourages its manufacturing and installing members to explore the opportunities presented by the fast-growing, high-margin ADAS/CVT markets. In making its “SEMA Advanced Vehicle Technology Report” available, the association hopes to help guide product and service planning and entry strategies for this emerging market. The SEMA analysis can help members understand the current market and its forecasted growth potential.

Amid this growth and rapid adoption of ADAS/CVT technologies, the specialty-equipment market will experience an unprecedented disruptive trend. These new systems are becoming increasingly common across OEM platforms, with consumers already weighing them in their buying decisions. Driver-assist technologies may currently represent only a relatively small share of the motor-vehicle aftermarket, but there can be little doubt that they are poised for rapid gains. Consider that electronic content in new vehicles is now greater than 40%. With current gross margins for these technologies between 40%–60% and rising, there will be increasing interest to replace, retrofit and modify the vehicle electronics systems on all cars.

Charting ADAS Strategies

In forming a market game plan, aftermarket businesses will want to fully understand not just the advanced technologies but also the timelines and channels of their rollouts.

  • Systems: Passive systems such as forward-collision, lane-departure and blind-spot warning, among others, will likely grow first and fastest. More complex active systems such as adaptive cruise control and automated braking may offer greater revenue potential, but they carry legislative and liability concerns, making them less attractive for the specialty-equipment industry.
  • Adoption: Aftermarket suppliers will wish to carefully monitor OEM adoption rates as leading indicators of market acceptance. Today’s OEM penetration is already estimated at $7–$8 billion. Meanwhile, future legislation may determine access to OEM systems data, which will directly affect the aftermarket’s ability to offer OEM-level calibrated products.
  • Channels: There will be many ways to engage ADAS/CVT business opportunities, including through part and component manufacturing, distribution, installation, repair and service. For example, aftermarket ADAS products are currently sold mainly through independent vehicle customization, repair and specialty-equipment shops. As the ADAS market expands, sales channel patterns will likely evolve toward traditional aftermarket models, with parts chains taking an increasing share.

For now, fleets account for the adoption of about 70% of current ADAS aftermarket products and will continue to drive sales in the near term. However, consumer awareness, needs and marketing will gain traction for ADAS products in passenger vehicles over the next two to three years.

Key Drivers and Technologies

The ADAS aftermarket is on target to grow from 5.3 million total unit upfits in 2016 to 6.6 million units upfitted by 2021. Passive parking assist—a relatively simple technology—accounts for the majority of market growth. In addition, SEMA market research has identified blind-spot warning and passive forward-collision warning systems as high-growth categories. Key aftermarket growth drivers will include:

  • The lower cost of aftermarket systems relative to OEM products, which are often included mainly in higher trim levels.
  • The ability to utilize ADAS products on older vehicles, as well as late-model trim levels that do not offer the same options.
  • The increased interest in safety systems on the part of end users.
  • The ease of self-installation by customers for certain systems, such as passive parking assistance.
Stay Informed!

The tremendous potential ahead for the specialty-equipment industry is detailed in “SEMA Advanced Vehicle Technology Opportunities.” To download a copy of the report, go to
www.sema.org/avt-opportunities.

Visit the SEMA Garage Vehicle Technology webpage at www.semagarage.com/services/vehicletechnology for additional information about ADAS technologies and how they may impact your business. 

The Bottom Line

To sum up, the aftermarket for ADAS is being driven by a blend of consumer demand for safety systems, new product availability and the growing ability of installers to offer these innovative and increasingly vital products for older vehicles. In addition, the aftermarket is positioned to offer cost-effective alternatives for newer vehicles whose ADAS options may be deemed by consumers too costly or insufficiently robust.

With a presently limited supplier landscape, there are real opportunities for new entrants into the aftermarket. Moreover, SEMA-sponsored research finds that the financing community is already welcoming ADAS participants with strong, forward-looking valuations. This research further suggests that the marketplace will evolve organically, with participants innovating new and unique value propositions and/or migrating to ADAS from other vehicle and sensor-technology segments. In other words, now is the ideal time to evaluate your business readiness for the ADAS/CVT revolution and consider how you can tap into this new segment’s tremendous potential.

Sun, 04/01/2018 - 14:53

SEMA News—April 2018

BUSINESS

Jeeps and Side-by-Sides

Expanding the Off-Road Market

Jeep
The big news for off-roading is the introduction of the all-new ’18 Jeep Wrangler JL, which aims to blaze trails among a newer range of consumers yearning for a taste of the outdoors.

It’s no secret that off-roading—especially Jeeping—drives one of the specialty-equipment industry’s largest segments. With roots to the post-World-War-II era when returning servicemen began discovering American backroads with their trusted surplus Jeeps, the off-road category remains a wildly diverse playground for specialty-equipment parts, accessories and lifestyle products. What’s more, Jeeping and recreational off-roading have spread to emerging international markets in the last decade, notably China and the Middle East. The mainstreaming of off-road motorsports is in part responsible for this vigorous segment’s growth, but the real race nowadays is among OEMs to win the attention of consumers who have never blazed a trail but would like to.

The New Jeep JL

Of course, the biggest news in the off-roading segment is the all-new ’18 Jeep JL Wrangler. In fact, to whet appetites for the vehicle’s recent debut, MOPAR rolled out more than 200 new Jeep accessories at the 2017 SEMA Show in advance of the official launch of the JL.

In general, the aftermarket has plenty of reason to welcome the JL, which the motor press is hailing as the best Jeep yet. The two-door Wrangler is available in three different trim configurations: Sport, Sport S and Rubicon. A Sahara version is available for four-door models.

Every Wrangler receives a Trail Rated badge and includes the Command-Trac 4x4 system with a 2.72:1 crawl ratio standard on Sport and Sahara models. There is also a Rock-Trac 4x4 system with a “4LO” ratio of 4:1 and Tru-Lok locking differentials standard on Rubicon models. The new Wrangler is good for up to 30 in. of water fording and offers a 3,500-lb. towing capacity.

The 3.0L EcoDiesel V6 and the all-new 2.0L turbocharged inline four-cylinder engines join the Wrangler lineup, while the 3.6L Pentastar V6 engine is upgraded for 2018. A six-speed manual transmission is standard on all models, with an eight-speed automatic option also available.

Jeep says that customers will experience off-road performance improvements from all iterations, but the manufacturer also has addressed consumers’ desire for better street and highway performance. A 4.41 ratio spread offers improved fuel efficiency at faster speeds and delivers quick acceleration with smooth, precise shift quality.

Meanwhile, the exterior design stays true to the Jeep roots but with a wider stance, a lowered beltline, larger windows and a seven-slot grille paying homage to the famous CJ. The windshield’s rake is optimized for improved aerodynamics, and a new header bar now connects the A-pillars, allowing the rearview mirror to remain in place even when the windshield is folded down.

Inside, a pushbutton starter makes its debut featuring a weatherproof surround. The instrument cluster features a 3.5- or an available 7-in. thin-film transistor information LED display. Integrated buttons on the steering wheel control audio, voice and speed functions. A central 7- or an available 8.4-in. touchscreen houses the fourth-generation Uconnect system. (A 5-in. touchscreen is standard on the Wrangler Sport.) Especially noteworthy, Wrangler now offers more than 75 available active and passive safety and security features, including blind-spot monitoring and rear cross-path detection, a ParkView rear backup camera with dynamic grid lines, and electronic stability control with electronic roll mitigation.

“I’d say that the launch of the Jeep JL is going to be huge for the enthusiast market,” said Craig Perronne, editor and publisher of Off-Road Adventures magazine. “I’ve driven it, and it really gets rid of all the flaws of the JK. With the JK, you always had to make some sacrifices for an off-road vehicle—the interior, the ride, the highway noise and such. The JL interior is much nicer, more comfortable, and rides better and quieter. I think that’s going to open the Jeep up to a whole new group of people and bring a lot more people into the off-road world. A hardcore off-roader might not care about all that, but if you’re trying to convince a significant other to buy it as an only vehicle, what might have been a bit of a stretch with a JK will not be with a JL.”

The TJ/JK ’97–’17 Wrangler Market
Jeep
The count of total registered TJ and JK Wranglers is based on Experian Auto Counts estimates based on U.S. vehicle registrations as of 6/30/17.
Parts Purchases and Installed
Jeep
Jeep accessorizers typically begin modifying quickly after purchase, making changes piecemeal rather than in batches. Of course, off-road enthusiasts add parts that make tackling trails and difficult terrain easier.

By the Numbers

If past is prologue, the JL stands to inherit a large following. SEMA market research estimates that there are a combined 2.1 million TJ and JK Wrangler models on the road—literally. More than 80% of TJ and JK owners use their Wranglers as daily drivers, with roughly half of them (54%) actually venturing off-road as well. Interestingly, 12% also own a second Jeep other than a TJ or JK. In addition, 52% of Jeep owners describe themselves as true automotive enthusiasts—a higher share than accessorizers in other aftermarket categories. Like the vehicle itself, owners are a stalwart, robust demographic:

  • The outdoor lifestyle resonates deeply with Jeep accessorizers. Nearly two-thirds of them (71%) take their Jeeps to trailheads or camp sites, and 60% report that they regularly engage in hiking, climbing and other outdoors activities.
  • As auto enthusiasts, Jeep owners often enjoy installing their own parts. More than half (52%) say that they like to wrench, want to maximize driving performance, or seek to make their TJs or JKs stand out. Handy with tools, 62% say that they manage moderate to complex installations themselves.
  • Most owners (82%) like to upgrade their vehicles in stages, focusing on specific needs project by project. Appearance and functional modifications are more common than engine upgrades.
  • While not every Jeep owner is hardcore, many seek products to improve their vehicles’ off-road readiness. Common upgrades include off-road/plus-size tires (36%), lift kits (67% total; 25% for self installations) as well as side steps, rock sliders and other body accessories (25%). In addition, off-roaders are also prone to investing in lighting and intake products, soft tops, recovery gear and a lot of polish, wax and cleaning products.

Jeep consumers are also research-savvy, doing stacks of investigation before opening their wallets. They rate online search engines, product reviews, parts manufacturer websites and videos as their primary resources. They also like to network, with 80% reporting that they consult friends or professional contacts as part of their decision-making processes. When it’s time to buy, 69% say they’ll do so from both online and brick-and-mortar retailers, although 35% prefer buying in person after researching online.

“Not a lot of people keep their Jeeps stock, so JL owners will soon start tinkering with them,” Perronne said. “From a media standpoint, I like to look at what you can do to bring new people into the fold. I think the JL is one of the big things. Another [trend] is an overland influence. It’s not like people are driving to the tip of Argentina, but more people are getting into four-wheeling to enjoy camping and getting out of town for the weekend.”

Perronne emphasized that legacy manufacturers and retailers need to grasp this trend and talk differently to this broadening enthusiast base.

“You’re seeing those two worlds merge, and that’s a good entry point for new people,” he said. “They’re probably not hardcore ‘wheelers. They don’t really want to do the gnarly trails. They just want to get out of town, enjoy the great outdoors and spend some time with their families outside the stress of their jobs or a weekend at home. So how do you capture and market to a wider audience without being intimidating?

Jeep
BRP’s Can-Am Maverick Trail UTV is another contender in an increasingly competitive segment. Side-by-sides such as this recent SEMA Show display vehicle have become price-conscious alternatives to Jeeping.

“A lot of the marketing you see from companies features the hardest-core off-roader you can build,” Perronne continued. “You see it all the time. I have a friend who just bought a JK who’s asking what he can do with it. How do you talk to the guy who just wants to add a little lift and make his vehicle work a little better? Not just retailing to people like him, but marketing is also going to get a lot more important. You can’t just keep talking to the same hardcore group of people over and over.”

One company already looking to cater to this broadened consumer demographic is Australia-based Pedders. Founded in 1950, the suspension manufacturer has stuck mainly to late-model muscle for its home market up to now. However, Pedders Brand Manager Angel Robles said that the new JL seemed like the perfect opportunity to enter the worldwide off-road scene.

“In most cases, our biggest emerging markets in export—those outside our traditional Australian home market—are largely being pushed forward by 4x4 product, including in Malaysia, Indonesia, India and China,” Robles aid. “Just looking at the Jeep market in particular, it’s such a huge market here in the States that even if you get a small niche, it’s a big sales hit when compared to something in the traditional performance market like, let’s say, a Ford Focus RS, of which they only make a couple thousand units. They sell more than that in a weekend for Jeeps, so if you can get only a little sliver of that, it’s a success for a company of our size.”

Jeep Owners Other Equipment
Jeep
Roughly a third of Jeep accessorizers have other vehicles, most commonly another Jeep (not a TJ or JK) or a pickup. This audience also has plenty of powersports and towed equipment such as ATVs, boats, motorcycles, campers, etc.

Pedders’ new two- and four-door JL suspension kits are designed to deliver better ride and handling both on and off the road for modestly modified Jeeps. A heavy-duty version is aimed at fully loaded Jeeps.

“When you drive it, it’s going to drive as you expect,” Robles said. “Because our home market is tight regulation-wise, we can’t bring a lift kit to market that would result in anything less than OE handling or better while keeping the stability management and other systems happy. We’re trying to reach the more average user who uses a vehicle off-road in a real setting like overlanding and getting into a few trails, but he drives it every day and wants something that allows him to run a bigger tire, get the lift he wants, but not suffer for it.”

HPS Performance Products is another manufacturer designing new products for the JL and expanding its other off-road offerings to keep pace with the booming segment. Based in City of Industry, California, the company is known for intakes, coolant and diesel-specific hoses, clamps and couplers, and markets its Jeep and 4x4 products as ideal upgrades for hardcore enthusiasts seeking rugged durability.

“We have lots of hose kits for Jeeps, especially for the older models going back to the old CJ series,” said Part Developer Austin Sager. “Jeep is obviously a big market; everyone crawls with them. We also know that the Jeep market is a lot bigger than what we’ve been doing. It can cover 50% of everything we sell total, so we would like to get into more of it. We also recently got a new ’18 Duramax, so we’ll be making [new] products for that. We just did a Silverado, a GMC Sierra and other diesels, so it’s time to expand.”

Side-by-Sides

Although Jeeps continue to dominate the off-road scene, side-by-sides (also known as UTVs) have emerged in recent years as enticing rivals.

“The Jeep market is huge,” said off-road journalist Matt Emery, a principal at Applied Arts Productions. “But side-by-side guys tend not to want Jeeps. They have ridden dirt bikes in the past, and now that they’re a little older, they want a little more stability and will take their families with them. It’s funny, but the demographics you’re looking at are primarily guys 35 to 40 years old and up to 65-year-olds—an older demographic.

Jeep
Camping and other outdoors lifestyle items, such as these Yakima products displayed at the 2017 SEMA Show, offer strong crossover marketing cues for retailers in the segment.

“From a racing aspect, side-by-sides are the fastest growing class and have been for several years, because it’s easy to get racing. Purpose-built race cars can be a little finicky as far as keeping things running and going, but side-by-sides are basically get in and turn the key, and everybody’s making something for them. You can outfit any of the side-by-sides not just for racing but also for recreation. You can take your family and go putting around, and they’re very reliable—they’ll get you back.”

On the OE side, the UTV market is becoming fiercely competitive in the race to supply consumers with tough, agile, trail-ready side-by-sides. In October 2016, RZR manufacturer Polaris acquired retail giant Transamerican Auto Parts, owner of off-road retail chain 4Wheel Parts. Soon after, multi-industry Textron entered the UTV/off-road fray by acquiring Arctic Cat. For 2018, American Honda heavily upgraded its flagship Pioneer 1000 UTV, calling it “the most technologically advanced side-by-side on the market.” Not to be outdone, BRP countered with its highly anticipated Can-Am ’18 Maverick Trail model and a slick “Meet You Out There” marketing campaign.

One of the major appeals of UTVs for consumers has been an entry cost as low as $11,000. But that, too, is rapidly changing, along with a growing hunger to take vehicle off-roading abilities to a higher level.

“Over the past few years, the price point on a new model has crept up,” noted Emery. “However, they are extremely capable vehicles for what you’re spending. You can get one, throw a couple lights at it, throw some other stuff on it, and have something to go out and have a good time in. But guys being guys, they’re buying different shocks or different spring kits for the shocks they have. Eibach, for example, makes a spring kit for just about everything. You can keep the stock shocks, put their progressive springs on, and it really helps even out the suspension.”

And, as with Jeeps and 4x4 trucks, wheel and tire packages are especially popular.

“Stock tire designs and diameters work pretty well overall, which, of course, is what the OEs are trying to do—throw a wide net,” Emery said. “But you can buy tires and wheels all day long for those things and get different sizes and tread patterns. For example, BFGoodrich is making tires for side-by-sides that are virtually the same designs as on trucks.”

Get the Research
The “SEMA Jeep Wrangler Report,” covering the demographics and purchasing habits of TJ and JK owners, is available for download at www.sema.org/sema-wrangler-report

With developments like the new Jeep JL and the mushrooming array of side-by-sides, it’s easy to see why aftermarket manufacturers are beefing up their presence in the off-road category. And if OEMs succeed in their quest to attract an even wider range of off-roading newbies into dealer showrooms, the aftermarket can expect an even greater boon and opportunities in 2018 and beyond.

 

Sun, 04/01/2018 - 14:34

SEMA News—April 2018

BUSINESS

By Clint Simone

Jack’d Off-Road

Blending a Modern Marketplace With Traditional Retail Values

Jack'd Off-Road
Founded in 2015, Jack’d Off-Road works with warehouse distributors on both coasts to ensure that a wide range of products is offered, with numerous shipping options available.
Aaron Gable and James Herring began their careers in the automotive industry like so many pioneers: with genuine passion. Bitten by the off-roading bug early, their enthusiasm for the hobby dates back to their childhoods. Growing up just a few miles apart in rural Georgia, the duo spent years with wrenches in their hands, learning every nook and cranny of what’s under the hood. Ultimately, their fun weekend activities created the foundation for Gable and Herring to become co-owners and operators of Jack’d Off-Road.

After each of them established a career of his own in different fields, Gable and Herring felt a strong call back to their youth and decided to open Jack’d, an online-only retail store focusing on the expansive Jeep and truck market. Jack’d has a business model that represents what many consider to be the evolution of the modern marketplace. Their shop exists solely online, which helps reduce overhead costs while still providing a direct, responsive customer support network.

SEMA News spoke with Gable and gleaned some insights about how the business model functions, revealing the trials and successes of a new-found online
business.

SEMA News: What about Jack’d Off-Road’s story makes it unique?

Jack'd Off-Road
The Jeep market is the most lucrative for Jack’d, offering a full catalog of off-road and performance parts.

Aaron Gable: I think it starts with our original intention behind starting Jack’d. We are just two guys who are lifelong automotive enthusiasts—especially when it comes to off-roading. We grew up outdoors around farms, so we were constantly working on trucks, tractors—really anything that could get us around. This is exactly what prompted us to start the website after years of diving into our own careers outside of the auto industry. We have a true and honest excitement for off-roading, and we want that expressed to our customer base and through the products that we sell through our website.

We didn’t set out with the intention of opening a multi-location business right away. We knew from the beginning that our operation would be online, and we accepted the challenges and advantages that this presents. Today, the plan remains to exist online and keep gaining market share as best we can.

SN: What is the basic structure of your business, and what can a customer expect when shopping with Jack’d?

AG: Our structure is fairly simple in that we focus primarily on off-road-specific parts, with some performance parts in the mix as well. As of now, we carry products from more than 250 different manufacturers, ranging from the major brands that everyone knows all the way down to mom-and-pop brands. As a general rule, we feel like having that option for our customers—even if they have never heard of a certain brand of product—will ultimately provide them with the best end result.

Jack'd Off-Road
The Jack’d team is constantly updating product data on its website to ensure reliable information on product availability.

SN: How do you maintain a relationship with customers without the aid of a physical brick-and-mortar location?

AG: There are no doubt advantages to having a physical retail location, especially when it comes to building up relationships with customers and earning their trust. So there is not much choice other than to go above and beyond to make up for any deficit there may be with respect to our online-only storefront. I’m proud to say that we interact directly with customers on just about every order that goes through our website. If a customer buys a product that may need an additional component, we give them a call and let them know before their order ever ships, which reduces the potential for headaches on the consumer end.

I think just about every page on our website has a “contact us” section specified, and we want our customers to take advantage of our experience. I have spent many, many hours on the phone talking with people about a particular product or even providing caution if I know it won’t be a good fit. At the end of the day, even if it is time-consuming and not always beneficial to our bottom line, we still want to ensure that our customers feel like they have an ally in us.

SN: What are some of the biggest challenges associated with maintaining and growing an online business, as it pertains to Jack’d?

AG: With our current online-only platform, the process of inventory management is a continual challenge. With so many different manufacturers and products carried, ensuring that a product is in stock is always hard work. We work with warehouse distributors on both coasts, so sometimes it is also a struggle to guarantee exact delivery dates. What one warehouse distributor has in stock and ready to ship is almost always not the case with another. That has taught us, however, that there really is no shame in becoming more specialized. These past few years have shown us what categories and specific products sell best for us, so we will be attempting to narrow down our list of products carried into a more manageable system this next year—benefitting both our operation and customers.

SN: SEMA News readers want to know about best business practices. What are a few best practices that stand out with your business?

Executive Summary

Jack’d Off-Road

P.O. Box 31041
Savannah, GA 31410
888-727-9402
www.jackdoffroad.com
  • Founded in 2015 as an online-only retail store.
  • Specializes in Jeep/truck performance and off-road parts. 

AG: As a website, we make it an absolute priority to be as transparent as possible with our customers. To us, it is vital that their questions are not only answered but also answered in a way that is concise and actually helpful. In short, we want to be masters in what we do. Earning the trust of a customer is a number-one concern for us.

SN: What does the future look like for Jack’d?

AG: As I previously mentioned, one of our biggest priorities is to become more focused and refined with the products that we offer. As of now, there are just too many product SKUs to manage. We are learning what our customers come to us for, and those are the products that we feel are most important. In addition to focusing our line of products, James and I want to start spending more time with the people in person—at events, races, etc. We are going to start making a real attempt to get out on the road and promoting the brand. We love what we do, and we want to share that excitement with as many of our customers as possible.